Residents of an old folks sheltered housing scheme are celebrating after plans to turn their quiet cul-de-sac into a busy through road collapsed.

The controversial road through the Rushden Croft cul-de-sac in Kingstanding was part of plans to build 34 homes on the derelict Pudding and Pint pub site next door.

But the city council has, after months of lobbying from local councillors and residents, cancelled the sale of a strip of land to developer Keepmoat, meaning the road cannot be built.

It is the latest twist in a two-year development saga.

Councillor Gary Sambrook (Con, Kingstanding ), who campaigned against the road, welcomed the decision. We have fought every step of the way since the proposals were put together nearly two years ago,” he said.

“We have organised a petition, a site visit with the planning committee, sent dozens of emails, held meetings with senior council officers, and asked questions in the Council Chamber. I am glad that this decision has finally been made, and that residents’ minds can be put at ease.”

Kingstanding councillor Gary Sambrook

His colleague cllr Ron Storer added: “We recognise that the land needs to be used for something, but that does not mean any planning application should be passed for the sake of it. The sale of land in Rushden Croft would have meant that a purpose-built sheltered housing scheme would have been ruined – and we wanted to protect that for our local residents.”

Council leader John Clancy said: “We’ve listened to objections from the community and ward councillors and decided not to sell the land.”

Campaigners, who were not opposed to housing on the derelict pub site, had consistently advocated an alternative access road from the Kingstanding Road dual carriageway.

The wrangles first hit the headlines last year when the city’s planning committee held a site visit, met residents and rejected the planning application.

The pub, which was more recently rechristened the Hare and Hounds, has been closed for several years. It had last month been gutted by a major fire .

Watch below: Fire guts derelict Kingstanding pub

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But their decision was overturned. Keepmoat won a costly legal appeal to a Government Planning Inspector who ruled the development could go ahead.

So in February Councillor Sambrook challenged the former council development chief, Tahir Ali, not to sell the council-owned strip of land to the developer.

But he was told that the land had been sold and nothing could be done. But now it appears he was mistaken and the deal has collapsed leaving residents able to enjoy their peace.

Keepmoat says it plans to continue with the housing scheme but will need to find an alternative layout with a different road access.

A spokeswoman for Keepmoat said: “We remain committed to delivering these much-needed new homes for Birmingham, and are currently exploring options to find a viable solution that meets the needs of all parties involved, including the City Council and local community.”